An office machine used by josie in her accounting business was completely destroyed by fire. the adjusted basis of the machine was $8,000 (original basis of $14,000 less accumulated depreciation of $6,000). the machine was not insured. calculate the amount and nature of josie's gain or loss as a result of this casualty. (assume this is the taxpayer's only casualty gain or loss.)

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)